2021 Procurement Salary Guide and Insights

"Boards and CEOs are sitting up and taking notice of talented individuals. The CIPS/Hays Salary Guide clearly shows that professionals with the right experience and capabilities will be sought out and rewarded leading to varied and interesting careers for decades to come."

Malcolm Harrison
Group CEO, Chartered Institute of Procurement & Supply

Procurement: Perceptions,
Challenges, Skills and Opportunities

77%

believe that Directors and Heads of other departments
understand what procurement specialists can offer

COVID-19 has had a significant impact on the procurement profession. As is the case for many professions, we’ve had to change and adapt to new circumstances and ways of working, which presents both challenges and opportunities to bring in positive changes.

Soft skills have proved vital in managing unpredictable supply chains. As demands on procurement professionals have continued to evolve, so have the associated skills needed to succeed in the role. As with last year, soft skills continue to dominate the top skills in demand across all sectors, with supplier relationship management (SRM) and communication being particularly crucial. At a time when procurement specialists are relied upon more than ever, continuing to manage supplier relationships through effective communication and strong influencing skills are critical to ensure cost-effective and strategically sound procurement solutions.

Many of us have transitioned to a remote working environment and we’ve needed to adapt our communication styles accordingly. Arguably, strong communication skills result in better performance across all soft skills: good communicators are better able to lead, influence, and manage stakeholders and suppliers. This suggests that a focus on training individuals in this vital skill is likely to be a significant boost to any procurement team.

With the events of the last year, the procurement profession, like many others has faced significant challenges, resulting in a need to change and adapt to new circumstances and ways of working. This offers both challenges and opportunities to bring in positive changes and whilst many have successfully implemented new practices, some sectors were impacted by the pandemic more than others. As a result, many believe that budget restraints will be a key short-term challenge, as well as managing costs while maintaining quality. Continuing to show the value of procurement to those outside the profession will be key to full recovery from the pandemic.

Salaries, Bonuses and Benefits

$63,847
average salary for
procurement professionals in MENA

7.9%
average pay rise received in
procurement across the region

Despite the challenges of the last year, employers are continuing to reward procurement professionals with salary increases.

32% of procurement professionals in MENA received a pay rise last year. On average, they earned a 7.9% salary increase, a great sign of the procurement function's increasing status and value across sectors and industries.

The importance of studying towards and showing commitment to qualify for MCIPS is evident again this year. Two thirds of employers have a preference for candidates who have MCIPS or are studying towards it; just under three quarters would give FCIPS candidates special consideration. Those achieving MCIPS status are able to demand greater remuneration for their dedication to the profession, with a 82% average salary disparity across the region.

The benefits of MCIPS designation extend to bonuses with a higher eligibility for receiving a bonus, as well as the receipt of larger bonuses than their Non-MCIPS counterparts. It’s clear to see the benefits of achieving this qualification, both from a remuneration perspective, but also wider value and respect within the profession.

On average, those who received a bonus were awarded an average of 8.5% of their salary, with the percentage increasing with seniority.

Although the vast majority found that their bonus was set by their organisation's commercial performance, they would have preferred for it to have been linked to their own personal targets. With 41% also open to having bonuses based on performance against their team's targets, it reflects the importance of collaboration and teamwork in the past year.

Many of us have benefited from more flexible working practices in the last 12 months. Whether it’s flexibility in choosing where to work or when, procurement professionals now have more freedom and an improved work-life balance.

Over the last year, a higher proportion of procurement professionals found themselves benefiting from home working and flexible working hours than actively sought out these benefits. Now that these benefits have become more commonplace, employees will start looking for other indicators of flexibility beyond home working, such as compressed hours and flexible timetables.

This extends into wider benefit packages. Currently, benefits received don't always match benefits desired. Although Private Medical Insurance is important and is treated as such by employers, the demand from employees for other benefits is lower than the likelihood of receiving them. It's important to understand what benefits employees seek in order to remain competitive when hiring talent.

Talent Management

66%
request MCIPS
(or studying towards) when hiring

64%
stated lack of technical skills/evidence
of formal procurement training as a
main challenge when hiring

As always, attracting the best talent is about more than just an industry-beating salary.

Salary is one of the leading motivators when it comes to securing a new job, but the last year has reshaped expectations of what the ideal job in procurement looks like. Employers need to recognise changing mindsets around the role of work and reflect these changing priorities in their hiring practices. Employees are looking beyond salaries and financial benefits to initiatives that will support their wellbeing and help them maintain a healthy work-life balance.

In a year where we've seen huge changes in the workplace, there is still a struggle to find the right talent. 47% say they have struggled to find the right talent in the last 12 months, driven by a lack of formal procurement training and industry skills.

However, despite this increased caution, there is still an openness to new opportunities, and one of the prime motivations for seeking a new role is career advancement. 89% of procurement professionals are seeking a more senior procurement role in the next two years, which highlights the need to offer clear progression paths in order to retain the best talent. If it’s unclear how they would be promoted internally, they are likely to be drawn to external opportunities.

When looking for a new role, candidates will research the company and look to understand what the company offers and its reputation, its diversity and inclusion policies and training and investment opportunities, as well as working practices and any flexible working policies that may be in place. Procurement professionals also look for information about the ethical practices as well as career progression opportunities within the company when looking to move.

Conversely, one in five of those not looking for a new role say they don’t wish to move as they want to retain their current work-life balance.

With the pandemic impacting every area of our lives, maintaining a good work-life balance is more important now than ever and is a key reason not to pursue a more senior role or look to switch jobs. Informal flexible working and flexi-time are also important to employees, giving them flexibility to fit work around their home life.

In order to attract and retain talent, it’s important for organisations to consider their approach to flexible working, ensuring that it’s in step with employee expectations and changing market norms. Given the close link to employee retention, it’s likely that introducing a market-leading flexible working proposition will be well worth the effort and investment.